JD Sports strikes a cautious tone in interims
Chris Beauchamp, Chief Market Analyst at IG:
“Rising sales have come at a cost of margins for JD Sports, which while performance in the key growth area of the US continues to be disappointing. Fortunately the restated guidance for year-end has helped the shares to hold their ground in early trading, but the firm needs to deliver on its promises come the full year.”
JD Sports scores mixed result
Adam Vettese, market analyst for eToro says: “JD Sports delivered robust headline sales growth of 20% in the first half, supported by the major acquisitions of Hibbett and Courir, which expanded its reach in North America and Europe and drove further market share gains.
“However, overall profit before tax fell by 13.5%, reflecting margin pressure, increased promotional activity, and softer trading in key regions, particularly the US and UK. Operating profit and adjusted earnings also declined as the group navigated a highly competitive retail environment and heightened cost inflation.
“Despite these challenges, JD’s disciplined execution and strong cash generation enabled a new £100 million share buyback, showcasing confidence in its long-term prospects. Continued investment in omnichannel infrastructure and brand partnerships lays the groundwork for future growth, but the near-term outlook remains cautious given macro uncertainties and ongoing margin risks.
“The investment case remains anchored on JD’s global scale, proven brand model, and ability to deliver returns to shareholders, provided trading conditions gradually improve. Shares are not far off half of what they were 12 months ago, and such a heavy discount may tempt some investors to back the turnaround”
No midlife crisis yet as Saga eyes £100m profit
Mark Crouch, market analyst for eToro, says: “Saga may be for the over-50s, but its latest numbers show there’s still plenty of life left in the tank. First-half results came in ahead of expectations, driven by strong demand in travel, the division now firmly back in cruise control. Forward bookings for the second half are buoyant, and while financing costs clipped the bottom line, the underlying engine of the business appears to be purring.
“The long-term ambition to deliver £100m in profit by 2030 is a bold one. Investors will rightly ask whether the pace is brisk enough to justify patience, especially with debt still casting a long shadow over the balance sheet. Financing costs may have taken a bite out of interim profits, but the real question is how efficiently Saga can turn strong bookings into consistent cash flow.
“Saga isn’t quite sailing off into the sunset just yet, but the tide has clearly turned. For now, it looks like older travellers aren’t the only ones bucking economic gloom.”
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